VIATICALS Meaning and
Definition
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Viaticals refer to a specific type of financial investment instrument that involves the sale or purchase of another individual's life insurance policy. It is a niche industry within the broader field of life settlements. The term "viatical" is derived from the Latin word "viaticum," which means provisions for a journey. Viaticals are primarily used as a means for terminally ill policyholders to obtain funds for their medical expenses and other end-of-life costs.
In essence, a viatical transaction occurs when a terminally ill policyholder sells their life insurance policy to a third-party investor at a discount. The investor then becomes the new policyholder and assumes the responsibility for paying the premiums until the original policyholder's demise. Upon the death of the insured individual, the investor receives the full payout from the insurance policy.
Viaticals provide an opportunity for terminally ill individuals to access a lump sum of money during their lifetime, which can be crucial for covering medical treatments, nursing care, or other financial obligations that arise due to their health condition. For investors, viaticals offer the potential for substantial returns if the insured individual passes away relatively quickly. However, there is also a risk involved, as the insured person may live longer than anticipated, leading to a longer investment period and potentially lower returns.
The viatical industry is subject to specific regulations imposed by relevant insurance regulatory bodies to protect both policyholders and investors. These regulations aim to ensure transparency, fair pricing, and proper disclosure of relevant information to all parties involved in viatical transactions.
Common Misspellings for VIATICALS
- ciaticals
- biaticals
- giaticals
- fiaticals
- vuaticals
- vjaticals
- vkaticals
- voaticals
- v9aticals
- v8aticals
- vizticals
- visticals
- viwticals
- viqticals
- viaricals
- viaficals
- viagicals
- viayicals
- via6icals
- via5icals
Etymology of VIATICALS
The word "viaticals" comes from the Latin word "viaticus", which means "provisions for a journey" or "money for traveling". In ancient Rome, viaticus referred to the funds or supplies provided to someone embarking on a journey, particularly a long or difficult one. Over time, the term "viaticals" came to be used specifically in the context of insurance policies or investments related to terminally ill individuals.
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